Installment Loans For Bad Credit
An installment loan is a type of loan granted to a borrower on the condition that they repay in fixed amounts with interest at specified intervals. The time intervals for the installment could be bi-weekly, monthly, or yearly, depending on the loan amount given. Installment loans could be auto loans, personal loans, mortgages, or student loans. The most common repayment periods for this loan type are monthly payments unless you opt for a payday loan.
These loans are available in banks, credit unions, and online lenders. As they’re used for purchases and services demanding a large sum, the loan is usually given to people with good credit scores and a verifiable source of income. However, thanks to Trice Loans, you can now get the best installment loans for bad credit, albeit with higher interest rates and fees. This article details all you need to know about applying for an installment loan, regardless of your credit profile.
How Do Installment Loans Work?
The standout feature of installment loans is their repayment format, which could be bi-weekly, monthly, or yearly. Monthly is the most preferred option, and lenders may add interest rates ranging from 5.99% – 35.99%. This interest rate is added to the original amount borrowed along with fees, and then a fixed payment will be set for each month for a period of one to seven years. The larger the amount borrowed, the longer the repayment period for the loan.
Compared to other types like payday or short-term loans, when you take out an installment loan, you must be ready to repay for a long time. Installment loans can help with large expenses, including wedding bills, mortgages, student loans, home makeovers, and expensive vacations.
Where to Get an Installment Loan: Top Lenders for the Best Installment Loan
Formerly, these loans were commonly given by traditional institutions such as banks and credit unions. Now, online lenders are saturating the market, granting secured and unsecured loans to borrowers who want to pay in installments. Lenders that offer installment loans to borrowers typically set a minimum credit score requirement to qualify for an installment loan of any type. This is to ensure they’re not granting an online loan to a borrower of high risk. Hence, you should be ready for a hard credit check with most lenders, especially if it’s a traditional credit lender.
However, with the accessibility provided by the online marketplace, you can secure money loans for bad credit with installment loan lenders. They give borrowers with bad credit a chance to build credit scores and history, as most report to the major credit bureaus. In the following headings, we highlight these kinds of lenders where you can easily get installment loan offers.
Get The Best Installment Loans From TriceLoans
You can get installment funds to positively impact your credit score with TriceLoans. TriceLoans is an indirect lending platform that connects you with lenders to find the best credit loans for your credit history and report. The platform conducts only a soft credit check so they can quickly match you to a provider offering loans within your credit profile. You get personal loans at low interest rates, ranging from as low as 5.99% to as high as three-digit interest rates.
TriceLoans is secured with 256-bit encryption technology, and processes are automated from registration to fund disbursement. You can apply online for different kinds of installment loans from reputable lenders such as CashAdvance, PersonalLoans, BadCrreditLoans, and CashUSA, among others. In addition, they have minimal eligibility requirements, including being 18 years or older, having a valid ID card, and having proof of income. TriceLoans platform is available 24/7 on your mobile devices and desktops/laptops.
SSL protection & encryption
Explore Personal Installment Loans From Direct Lenders
Another popular option to explore is direct deposit loans from direct lenders. With these lenders, there’s no third-party platform to process your common types of installment loans. For this option, the task of finding an installment loan lender, comparing them to standards, and analyzing their interest rates is all on you.
Direct lenders are plentiful online, each with a feature that edges the other out. For instance, you could find a lender that offers unsecured or secured loan options without a hard credit inquiry while still guaranteeing low interest rates and minimal fees. Hence, you would be able to apply with low credit scores and hopefully improve your credit report.
BankRate Personal Loans
CashUSA
BadCreditLoans
LoanStart
MaximusMoney
CashNowPayBackLater
Cash Advance
Traditional Lenders
Some borrowers still prefer getting their installment funds from credit unions and banks or, in other words, traditional lenders. These institutions typically offer lower interest rates, but not everyone qualifies easily for their loans. This is because they check your credit history, scores, and reports before they consider giving you the needed funds. People with lower credit scores may not qualify for installment loans, and their hard inquiry checks can negatively affect your credit score. Besides, installment loans take lots of paperwork, and it could take a number of days before funds are approved and disbursed into your account.
Lending Apps
You can get all examples of installment loans from lending apps, especially if you want personal loans for self employed persons. This is because these apps offer bad credit loans with guaranteed approval for borrowers, regardless of their poor credit scores. Lending apps focus more on your ability to repay the loans than your FICO score or history. However, there might be higher interest rates and fees attached to funds from these apps. Still, these rates are lower than taking advances from credit card issuers for short term installment loans. In addition, their processes are automated and simple to follow, with minimal eligibility requirements.
Types of Installment Loans
The different types of installment loans include personal loans, auto loans, mortgages, home equity loans, and debt consolidation loans. We list and briefly detail these loans below.
- Personal credit: Personal loans can be used for various purposes, such as home renovations, wedding expenses, vacations, and many more. They typically come as an unsecured loan with or without hard credit checks.
- Auto funds: These are given to borrowers who need funds for a car purchase.
- Mortgages: This type of loan is used for a land or house purchase.
- Home equity: This is a loan borrowed against the equity of your home.
- Debt consolidation: This is a loan taken to pay off other debts, like a credit card debt.
There can be other personal loans that count as an installment type, as long as there’s a fixed interest rate and you’re required to make monthly payments in the repayment terms.
When to Consider an Installment Loan
Legit installment loans can be used for various purposes. The most crucial times you should consider this loan offer include the following.
- For emergencies: If you need fast cash for urgent situations, you can get a small loan and pay in installments with many lenders. Installment loans often have lower rates than payday/short-term funds and will be a good option to explore in case of emergencies. The emergencies indicated in this case include hospital bills and rent, among others.
- Consolidation of debt: If you require credit card consolidation along with other debts, you can take out an installment loan to turn them into a single debt. This will help you make a monthly payment with lower interest rates on the other debts combined.
- Personal bills: These include expenses such as home renovations, vacations, wedding bills, and tuition fees, among others.
How To Get Approved For An Installment Loan With Bad Credit
Usually, guaranteed installment loans are for individuals with top credit scores who have proven financial responsibility for years. As it’s a long-term loan, lenders are more encouraged to give out funds to people considered low-risk. This is why most providers ask for a free credit report or conduct a soft/hard check. However, thanks to the online marketplace, you almost don’t need excellent credit to qualify for many loans, including the installment type. These merchants advertise loans for people with bad credit, guaranteeing they don’t check your credit report as long as you have the means to pay them back.
So, if you fall in the category of people with subpar scores, these vendors with no credit check are the ones to go for. You’re guaranteed a personal loan you can pay in installments as long as you meet their eligibility requirements. However, rates may be higher, considering that these vendors are taking a risk. Another way to get approved, even if you have bad credit, is to have a co-signer with high FICO scores. Lenders offer installment loans to individuals with a minimum credit score of 600; hence, you can get a co-signer with that or higher.
How Does An Installment Loan Affect Credit Score
If you’re considering improving your credit score first while needing funds, installment loans may be the option for you. Generally, lenders report to the credit bureaus as you make timely payments, as agreed in the loan terms and conditions. These bureaus, Experian, TransUnion, and Equifax, take your payment history quite seriously, accounting for 35% of your FICO score. These monthly payments will include a calculation of the original amount, interest, and fees spread over the number of months or years you’re to pay. Making prompt payments will positively affect your FICO score, but if you miss payments, your FICO score will be negatively affected.
Also, getting the funds adds to your credit mix, which is a factor that accounts for about 10% of your FICO score. Lastly, simply taking out the loan contributes to your credit history, which contributes to 15% of your FICO score. All of these help to positively impact your FICO score, moving higher in the score range if you’re smart and responsible with your finances.
How To Apply For An Online Installment Loan
Aside from credit requirements, you must attain some eligibility criteria to secure a personal loan to pay in installments. They’re usually the precursor to your application process with online lending platforms. Some of the documents/requirements to be met include the following.
- You must be 18 years or older.
- You must have a valid government-issued ID showing your face, date of birth, and residential address.
- You must be a citizen or have permanent residence in the United States.
- You must have a stable income backed by a proof of employment document.
- You must have an active bank account.
- You must have an active mobile number or an email address.
If you meet these eligibility requirements, you can proceed to the lender’s official website to fill out a loan request form. Here, you’ll specify the loan amount you want to receive and its purpose. Once done, submit, wait for approval, and then disbursement of funds into your account.
Alternatives To Bad Credit Installment Loans
If you’re not into these second chance installment loans, you can explore options from other sources, as highlighted below.
Line Of Credit
This is a loan option given by your bank based on an agreement that there’s a specified amount of your money that you can borrow. You can take out any amount you want for a personal loan if you do not exceed the amount. You can repay the loan immediately, or you can do so over specified periods. Both options attract interest and fees.
Payday Alternative Loans
Payday alternative loans are similar to Payday loans, but they come with lower interest rates. The maximum interest you get on Payday alternatives is 28%. However, loan amounts are small, at a maximum of $1,000 and a maximum repayment period of six months.
Crowdfunding
You could get your friends and family to chip in different amounts for you on a crowdfunding site. This option is free of interest and repayment periods. However, you might attract a fee paid in percentage of the amount raised to the crowdfunding platform.
Conclusion on Installment Loan for Bad Credit
Fortunately, the time of getting loans from direct lenders only has long passed, and you might have limited options for getting funds. With platforms like TriceLoans, you’re guaranteed personal loans to pay installments, coming with minimal fees, low interest rates, and long repayment terms. This platform is secure and automated, serving you with the best deals as long as you have a stable income to repay their merchants. Once you meet the general eligibility requirements, you can complete the platform’s loan request form within minutes, get approval, and have the funds disbursed into your account within 24 – 48 hours!